W13 Exercises Möbius Lesson 13 Homework

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W13 Exercises: Mobius Lesson 13 Homework Which of the following questions would be helpful to consider when trying to improve your foresight? (Check all that apply) 4 Do | see any patterns in the data that might be useful? (<) What do | think | will accomplish? 4 How have | performed in the past on similar problems? (4 What are the long-term consequences of my decision? (&) What do | hope to accomplish? (<) What little things did | overlook that could support or prevent the outcomes | hope for? (4 Who should | share my calculations and decisions with, that may help me see things | may be missing? How does probability relate to foresight? (O Foresight requires formal calculations of empirical probabilities to assess the likelihood of assumptions being true @ Foresight requires at least an informal use of probability to assess the likelihood of assumptions being true (O Foresight requires formal calculations of theoretical probabilities to assess the likelihood of assumptions being true. (O Probability is not related to foresight (O Foresight requires the calculation of confidence intervals to determine your margin of error. Jessica is planning her retirement and is trying to figure out how much money she will need. As part of her research she learns that the average life expectancy of Americans is 76 years old. She figures out precisely how much money she will need to last her if she retires when she is 65 and lives until she is 76 years old. She assumes that her annual spending during retirement will be equal to her spending this year In this scenario Jessica has shown both good and poor foresight. Select whether Jessica had good foresight or poor foresight for each aspect of her process. Jessica is considering how much money she will need in retirement @ Good (O Poor essica is making sure she will have funds to last until she is 76 years old. O Good @ Poor essica is planning for retirement. @ Good (O Poor lessica has not considered increases in the cost of living. O Good @ Poor essica is primarily planning for the financial aspects of her retirement. O Good @ Poor

Why would a gospel perspective be important in the Quantitative Reasoning Process for making informed decisions? @ The gospel perspective provides a standard by which to evaluate our decisions (O We should never do anything without direct revelation. (O Prophets know everything (O The gospel perspective makes all problems easy to solve. (O The gospel perspective guarantees you'll make the correct decision Making an Informed Decision Using the Quantitative Reasoning Process 1) undrsond e robiem Keep the Old Car or Buy a Used Car Manny is an online student who currently owns an older car that is fully paid for. He drives, on average, 160 miles per week to commute to work. With gas prices currently at $2.66 per gallon, he is considering buying a used, fuel-efficient car, and wants to know if it would be a good financial decision. The old car Manny owns currently gets 17 miles per gallon for average fuel efficiency. It has been a great vehicle, but with its age, it needs repairs and maintenance that average $670 per year (as long as nothing serious goes wrong). He is considering buying a newer used car that will cost a total of $5,000 over a three-year loan process. The used car gets 30 miles per gallon and would only require an average of $10 per month for general maintenance. To help make a decision Manny wants to calculate the total costs for each scenario over three years. He decides to use the Quantitative Reasoning Process to do this. ) enity i Asumptons O~ Manny has identified some key variables for his situation. Select the two variables that should be removed from his list because they do not apply to the current situation. (] Manny’s wages. ("] The cost of repairs on the old car. The year Manny was bomn. (] The number of miles Manny drives each week. Manny’s graduation date from elementary school. (] The cost of gas. (] The loan cost of the used car. [CJ] The cost of the used car. Manny has also made a list of important assumptions he will be using to make his decision. Check the boxes for the three assumptions from his list that are not useful in this scenario.

Manny has also made a list of important assumptions he will be using to make his decision. Check the boxes for the three assumptions from his list that are not useful in this scenario. Manny assumes he will still like spinach at the end of three years no matter which choice he makes. [J Manny assumes there are 52 weeks in a year. (] Manny assumes that nothing will go seriously wrong with either car during this three year period. Manny assumes he will continue to go running in the mornings every weekday for the next three years. (] Manny assumes gas costs will remain about the same over the three years. (] Manny assumes he will continue to drive about the same number of miles each week over this three year period. [J Manny assumes the loan period will be 3 years. Manny assumes his lunches will continue to cost about the same for the next three years. O +3 Which one of the following quantitative tools would be most appropriate for Manny to use to decide whether the new car he is looking at would cost less than his current car over the next three years? @® Calculate costs of ownership of the two options using the values he has gathered for his variables. Read consumer reports to find and compare the confidence intervals of the average cost of ownership of both his old car and the new car. (O Create a scatter diagram of car price vs. age to determine whether there is a better newer car option (O Make an amortization table to determine the monthly payment and total interest for the loan.

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Find the total costs (gas, maintenance/repairs, purchase price) for each scenario over the three years. Round your answers to the nearest dollar. Scenario ”Total Cost for Three Years Keep the old car 5915.50 Buy the fuel-efficient used car 7.573.12 1‘3)theanuﬂbnmadoeddan Pl Based on the information presented, what do think Manny should decide? Option #1: Keep the old car Option #2: Buy the fuel-efficient used car Option # 1 5) evtunteYourResoning_ ) Manny wants to be careful to avoid a lack of follow-through. He plans to do this by making sure he does not have any unexpected expenses related to owning his car. As he looks back at his reasoning, he realizes there are a few aspects of car ownership he hadn't considered. Which three of the following expenses are most likely to be ones that will impact the cost of car ownership? The cost of the title and registration for the car. [] The cost of income taxes he will pay this year. The cost of car insurance. (] The cost of replacing a transmission in this make of car. The cost of sales tax on the purchase price of the car. Manny also realizes that the accuracy of his assumptions might play a role in his ability to follow-through with his decision. Which three of the following assumptions have the greatest potential to limit his ability to follow-through, if they turn out to be false assumptions? (] Manny assumes the loan period will be 3 years. [J Manny assumes there are 52 weeks in a year. Manny assumes gas costs will remain about the same over the three years. Manny assumes that nothing will go seriously wrong with either car during this three-year period. Manny assumes he will continue to drive about the same number of miles each week over this three-year period.

Katlyn is a freshman majoring in business management. Following the recommended 8-semester plan for her major, she signed up for 14 credits for her first semester. As she looked at her weekly time budget, she planned that she would need to reserve 28 hours of homework time each week (2 hours per credit) in order to be successful in her studies. With the intent of maintaining an active, balanced lifestyle, she decided to join her roommate’s fall soccer league. She planned this soccer league would take 6 hours of her time each week for practice and games Atfter the first couple of weeks of class, Katlyn found herself consistently pressed for time. As she evaluated her reasoning, she saw that her classes were requiring about 28 hours of homework per week as she had planned, but that travel time for her classes and soccer occupied an extra 9 hours per week that she had not anticipated. Which of the actions below would likely have helped Katlyn realize the need to include travel time in her plans? List the items #1-4; 1 being the most helpful ... 4 being the least helpful Nalking to campus to locate her classes and estimate the necessary travel time, prior to the beginning of the semester 1 Sharing her plans to join the soccer team with her parents, and asking for their advice 3 Making a detailed weekly schedule showing where each class and activity took place - Going to a nearby park to practice soccer with her roommate and some friends 4 The following list shows some decisions Katlyn made at the beginning of the semester. Which four of these decisions will require follow-through for Katlyn to achieve her desired outcome (to be successful in her studies and have a socially, actively, and spiritually uplifting BYU-Idaho experience)? (] Calculate that she has 16x6 = 96 hours of time when she is awake each week from Monday through Saturday if she sleeps 8 hours a night. Study and complete all her homework with a focus on understanding the material and why it is important in all her classes (] Picking soccer as the way to stay physically active instead of some other sport or workout program. Participate on the soccer team all semester long Follow her time budget plan and find and use the most efficient paths for travel between class and activities. Actively serve and participate in her ward and read her scriptures daily in order to maintain a wholesome spiritual life.

HEE John and Bethany are newly married and they currently own no furniture (1) Understand the Problem ~_{) They are comparing the prices of two different apariments they are interested in renting for the next 12 months. @ P T rc— The first apartment costs $970 per month and is fully furnished (it has a kitchen table and chairs, a couch, a TV, a bed, and a dresser). The second apartment costs $650 per month, but is not furnished. They assume if they rent the second apartment they would need to provide their own furniture or live without it. (3) Apply QuantitativeTools 4= If John and Bethany go with the unfurnished apartment rather than the fully furnished apartment, how much will they save per month? $ 320 (Round to the nearest dollar) The unfurnished apartment is what percent less than the furnished apartment? 33 % (Round to the nearest percent) This shows that the savings from renting the unfurnished apartment are substantial (4) ke fomedbedsion > Which option would you choose? (Either answer is awarded full credit) Option #1: | would rent the furnished apartment and enjoy nice furniture for a year Option #2: | would rent the unfurnished apartment and live without furniture for a while Option# | 1 5) Evaluate Your Reasoning L) | As part of evaluating their reasoning, John and Bethany look more closely at how much they will save. After 12 months, renting the unfurnished apartment would result in how much savings? $ 3840

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{owever, if they chose this option, they would have to live without furniture for a while f a good quality, queen size mattress, costs around $512, and a kitchen table with two chairs costs $128, then for how many months would John and Jethany have to eat and sleep on the floor in the unfurnished apartment before they would have saved enough money to purchase the furniture 2 Vhich two of the following are some important items of follow-through to make the unfurnished apartment work for them? (Select all that apply) Discipline themselves to save so they can purchase the new bed and required furniture Make arrangements to borrow or purchase low cost sleeping mats, so potential health problems from sleeping on the floor will not develop. (] Take out a loan to buy all the new furniture they need immediately. Recall from lesson 5 that Tom was deciding which breed of dog to purchase. He had made the following assumptions « He wanis a medium sized dog in the 20-30 pound range. « He doesn't have time to care for a very active dog, so he is looking for one with lower activity levels. « He would like a guard dog « His dog needs to be able to get along with his roommate’s dog. Before Tom finalizes his decision on which type of dog he is going to get, he stops to consider whether he has exercised proper foresight in each of the following areas. Up to this point, which four of the following items has he not yet shown proper foresight in his consideration? What he will do with the dog when he goes on vacation. How permanent is his current residence and how dog ownership might impact his moving options. (] The dog needs to get along with his roommate’s dog. The costs of dog ownership: food, vet bills, other liabilities. Possible allergy issues with the new dog (7] The amount of time he has for a dog. From the list above, which six options will require additional follow-through once he has a new dog in his life? He will need to follow through on any allergy issues with the new dog. He will need to follow through on by planning what he will do with the dog when he goes on vacation He will need to follow through on assuring he spends time with the new dog. He will need to follow through by budgeting to cover the costs of dog ownership He will need to follow through by adjusting any plans to move to allow for his new dog. () Dogs do not require follow through. He will need to follow through on helping his new dog get along with his roommate’s dog

i Suppose you want to save $7,500 to go on a dream vacation in three years. O Je You can save for your vacation by either depositing one single lump of money into a savings account and letting it accumulate interest or by making regular monthly payments (D) Identify Variables & Assumptions O~ Identify which two of the following variables would NOT be useful in understanding the financial situation (7] The amount of money you would need to deposit in the savings account each month (J The amount of money you would need to deposit in the savings account as a single deposit The people you hope to take or to meet on your frip. (] The interest rate on the savings accounts The type of clothes you will bring on your trip Identify which two of the following assumptions would NOT be useful in understanding the financial situation. When you wish upon a star your dreams come true (7] $7,500 will be enough money for your dream vacation in 3 years. (] The interest rate for either account is 1.5% APR R N e BB

E4 Ureams are 10r 100Is. o= How much money, as a one-time deposit, PV, would you need to deposit into an account that earns 1.5% compounded monthly to earn a future value, FV , of $7,500 in three years? This amount can be found by using algebra to rearrange the function, FV = PV(l - %)("Y') so that FV becomes an input variable and PV becomes the output variable. , r (— nY) PV=FV(1+ 1) Use this function to find the amount needed as a one-time deposit to earn $7,500 in 3 years. 7170.18 What monthly payment, PMT, would you need to deposit into an account that earns 1.5% compounded monthly to earn a future value, FV', of $7,500 in three years? ry(rnY) ((1+;) —1) This amount can be found by using algebra to rearrange the function, FV = PMT ( = ) , 5o that F'V becomes an input variable and PMT n becomes the output variable. () ((1+5)"1-1) PMT = FV Use this function to find the amount to deposit each month to earn $7,500 in 3 years. (round to the nearest cent) 9.16 How much total money would you need to deposit if you made this monthly deposit for 3 years? (round to the nearest cent) 9.16

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Which saving option is the least expensive? @ A one time deposit left to accrue interest for 3 years (O Monthly deposits for 3 years. Which savings option would you choose? Option #1: Monthly deposits because it is the least expensive option. Option #2: Monthly deposits because it is too difficult to come up with the amount needed for a one-time deposit. Option #3: A one-time deposit because it is the least expensive option Option# | 2 5) oo essnios, - Identify which four of the following events might effect how you follow through with your plan. After saving for one year, an outbreak of the very contagious 2-year plague hits your dream vacation site. Just before beginning to save you lose your job. While you are saving for your vacation, your car stops running and needs an expensive repair. (] After your dream vacation you decide to travel more frequently (] Atfter three years of saving you decide to give your money to charity You inherit $7000 just before you begin saving. (] After your dream vacation, you never want to leave home again.

W13 Exercises Möbius Lesson 13 Homework

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